In a statement, the company said they have been "working with Revenue Commissioners" for months and as a result they have concluded that there is a legal requirement "to report earnings" of individual users.

The Revenue Commissioners last night said they are aware that a number of Irish people use the website and that any income "derived from such activity is subject to tax".

They said the rent-a-room relief scheme, which allows people to earn up to €12,000 tax free, only applies to rooms rented on a long-term basis as a more permanent home.

"Income from the provision of accommodation to occasional visitors for short periods would not qualify for rent-a-room relief as the visitors use the accommodation as guest accommodation rather than residential purposes," Revenue said.

"It's important to point out that the provision of short-term lettings in itself is not evidence of tax evasion. There's no issue where the income is declared to Revenue and any tax due is paid."